PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q4 2018 Earnings Presentation
14 slides from PPG Industries's earnings presentation, Jan 17, 2019
Slide 1: Fourth Quarter 2018 Financial Results
Fourth Quarter 2018 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer John Bruno, Director, Investor Relations 1 Information current as of January 17, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements Statements continued herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933
Slide 3: Fourth Quarter 2018 Financial Highlights
Fourth Quarter 2018 Financial Highlights Net sales up about 2 percent in constant currency • Net sales were down about 1 percent, including unfavorable foreign currency translation impacts of about 3 percent, or nearly $110 million • Selling prices increased more than 2 percent, marking seven consec
Slide 4: PPG Fourth Quarter Net Sales
PPG Fourth Quarter Net Sales* ($ in millions) $4,000 +2.4% -0.8% -2.9% $3,750 3,682 +0.4% 3,645 $3,500 $3,250 4Q'17 Price Volume Currency Acq./Div. 4Q'18 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed to Q4’
Slide 5: Fourth Quarter Net Sales Volumes
Fourth Quarter Net Sales Volumes PPG volume performance by major coatings vertical vs. prior year and end-use market demand U.S. & Canada Europe / Middle Asia-Pacific Latin America East / Africa Aerospace Above Market Above Market Above Market At Market Automotive Refinish Below Market Above Market
Slide 6: PPG Full Year Net Sales (continuing operations)
PPG Full Year Net Sales (continuing operations) ($ in millions) $15,500 +0.8% 15,374 +0.7% +0.7% +2.1% $15,000 14,748 $14,500 FY'17 Price Volume Currency Acq./Div. FY'18 2018 Net Sales by Major Region PPG Currency Exposure Latin Currency ~2018 % PPG America Net Sales 11% Euro All 20% Other Asia- Chi
Slide 7: Performance Coatings
Performance Coatings $MM (USD) 4Q18 4Q17 Chg % Year 2018 Year 2017 Chg % Net Sales 2,140 2,124 16 +1% 9,087 8,730 357 +4% Income 261 259 2 +1% 1,300 1,313 -13 -1% Margin % 12.2% 12.2% -- -- 14.3% 15.0% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency
Slide 8: Industrial Coatings
Industrial Coatings $MM (USD) 4Q18 4Q17 Chg % Year 2018 Year 2017 Chg % Net Sales 1,505 1,558 -53 -3% 6,287 6,018 269 +4% Income 187 214 -27 -13% 818 979 -161 -16% Margin % 12.4% 13.7% -- -- 13.0% 16.3% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency
Slide 9: Cash
Cash ($ in millions) Cash and Short Term Investments* 2018 Cash Returned to Shareholders $2,000 $1,900 $2,250 ~$2,150 $1,500 $1,500 $1,500 $1,200 $2,000 Dividends $1,000 ~$450 $1,000 $1,750 ~$1,500 $500 $1,500 Cash $0 $1,250 From 2014 2015 2016 2017 2018 Continuing $1,000 Operations* Approximate 201
Slide 10: First Quarter 2019 Financial Assumptions
First Quarter 2019 Financial Assumptions Category Projection ($ in millions unless stated otherwise) • Increasing at low-single-digit Raw material costs (Y-O-Y) percentage Unfavorable foreign currency (Y-O-Y) • $170 - $190 Sales Based on current rates • $18 - $22 Segment expense Corporate & legacy e
Slide 11: 2019 Financial Assumptions
2019 Financial Assumptions Full Year Pre- Category Full Year Sales Comments Tax Income ($ in millions unless stated otherwise) At or below Phasing of incremental sales follows 2018 - 2019 Acquisitions $225 - $275 segment average 2018 and 2019 acquisition closure (acquired or announced) earnings marg
Slide 12: 2018 Full Year Summary
2018 Full Year Summary Financial and operational performance • Net sales up ~4 percent; sales volume growth of about 1 percent and acquisition-related growth of about 1 percent • Selling prices improved each quarter throughout the year • Adjusted earnings per diluted share of $5.92*, modestly higher
Slide 13: Additional Materials and Appendix
Additional Materials and Appendix Thank you for your interest in PPG Industries, Inc. Contact Information: Investors: John Bruno phone: +1.412.434.3466 email: [email protected] Media: Mark Silvey phone: +1.412.434.3046 email: [email protected]
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Fourth Quarter 2018 Net Income Attributable to PPG as Reported $ 256 $ 1.07 $ 2 $ 0.01 $ 258 $ 1.08 Release of business restructuring reserves (7